Hi Matt. I currently live in California and recently created an LLC in California. My LLC business will be an online store that manufactures and ships products from Arizona. I created the LLC in CA as that's where my fingers will mostly be typing from (at least for now). I haven't yet gone "live" with my online store and therefore haven't sold anything to make any kind of profit yet. Wondering if it would be profitable to do some sort of dissolution to the CA LLC and open in either Wyoming, Delaware, Nevada or Arizona? I'm planning on doing some sort of digital nomad type work with the online store. Meaning I wouldn't be working mainly from CA, but may end up doing some work there at some points during the tax year. I do own property in CA that is being rented and also do some consulting work out of CA that need to be declared under CA taxes. My name is also listed on a deed of a family home that has other family members living in it, and it's what I use as my mailing address. Thanks in advance for your thoughts!
Hi Sara, the state is most likely to find you "transacting business" in California. So even if you dissolve the CA LLC and form an LLC in another state (say NV for example), you would need to register that NV LLC as a foreign LLC (www.llcuniversity.com/what-is-a-foreign-llc/) in California... so then you'd be maintaining 2 LLC filings (2 Registered Agents and 2 annual report requirements). The fines and penalties in CA are fairly hefty for an LLC illegally transacting business. We've listed some out here: www.llcuniversity.com/california-llc/doing-business-in-california/. Hope that helps.
@@llcuniversity Thanks Matt. So my guess is that other businesses doing something similar to what I mentioned have business partners living in other states?
@@llcuniversity I'm a bit confused as I also found this information, and wondered if it may be outdated as it seems to be in a bit of a contrast? www.legalzoom.com/articles/which-state-should-you-file-your-llc-in
Hi Sara, to be honest, most people screw this part up. While there may not be issues right away, they usually pop up 1-2 years later. If an LLC has Members in multiple states and is doing business in multiple states, it should be formed in one state and registered as a foreign LLC in all other states where the entity is transacting business.
It's just ridiculously vague, ambiguous, and really not helpful. In a prior link I sent you (about doing business in CA), we reference many of the applicable laws in CA. The "which state" is the most misleading subject matter in the industry... and it leads to a lot of confusing. The article you linked to fails to talk about issues like foreign qualification, "conflicts of law" (if something goes to court), state income tax upon the Members, and lots more.
Hi, i was wondering I registered my business & it was approved, I acquired my EIN. Now I need a business ( occupational ) tax receipt from my tax collector. However I’m not gonna operate my business until next month. Do you know if I have to obtain the business tax receipt right away or can I wait until I start? Thanks!
Hi Luis, you can get the business occupational tax stuff setup now. There's no negative to that. That's how most people do it. Get all the logistics/paperwork in place ahead of time. Hope that helps.
Hi Matt, I created LLC entity in Wyoming (by your link to Northwestregisteredegent.com) but the creation still in progress, and I want to get ITIN. So I will send to the IRS ( form w7, my passport and form 1040NR ), I don't know how to complete form 1040NR and I don't know if I must attach schedule-c too! Can you help, please?
Hi iMS, you can only get an ITIN if you have a US tax filing requirement. We have the instructions here: www.llcuniversity.com/irs/how-to-apply-for-an-itin/. We don't recommend completing 1040NR yourself, as it's a pretty complicated tax return. We recommend hiring an accountant. Send an email to Gary at gwcarter.com/ - they specialize in working with non-US residents and they can help with ITIN, 1040NR, and more. Hope that helps.
Hi iMS, you can only get an ITIN if you have a US tax filing requirement. We have the instructions here: www.llcuniversity.com/irs/how-to-apply-for-an-itin/. We don't recommend completing 1040NR yourself, as it's a pretty complicated tax return. We recommend hiring an accountant. Send an email to Gary at gwcarter.com/ - they specialize in working with non-US residents and they can help with ITIN, 1040NR, and more. Hope that helps.
Hi Matt. I currently live in California and recently created an LLC in California. My LLC business will be an online store that manufactures and ships products from Arizona. I created the LLC in CA as that's where my fingers will mostly be typing from (at least for now). I haven't yet gone "live" with my online store and therefore haven't sold anything to make any kind of profit yet. Wondering if it would be profitable to do some sort of dissolution to the CA LLC and open in either Wyoming, Delaware, Nevada or Arizona? I'm planning on doing some sort of digital nomad type work with the online store. Meaning I wouldn't be working mainly from CA, but may end up doing some work there at some points during the tax year. I do own property in CA that is being rented and also do some consulting work out of CA that need to be declared under CA taxes. My name is also listed on a deed of a family home that has other family members living in it, and it's what I use as my mailing address. Thanks in advance for your thoughts!
Hi Sara, the state is most likely to find you "transacting business" in California. So even if you dissolve the CA LLC and form an LLC in another state (say NV for example), you would need to register that NV LLC as a foreign LLC (www.llcuniversity.com/what-is-a-foreign-llc/) in California... so then you'd be maintaining 2 LLC filings (2 Registered Agents and 2 annual report requirements). The fines and penalties in CA are fairly hefty for an LLC illegally transacting business. We've listed some out here: www.llcuniversity.com/california-llc/doing-business-in-california/. Hope that helps.
@@llcuniversity Thanks Matt. So my guess is that other businesses doing something similar to what I mentioned have business partners living in other states?
@@llcuniversity I'm a bit confused as I also found this information, and wondered if it may be outdated as it seems to be in a bit of a contrast? www.legalzoom.com/articles/which-state-should-you-file-your-llc-in
Hi Sara, to be honest, most people screw this part up. While there may not be issues right away, they usually pop up 1-2 years later. If an LLC has Members in multiple states and is doing business in multiple states, it should be formed in one state and registered as a foreign LLC in all other states where the entity is transacting business.
It's just ridiculously vague, ambiguous, and really not helpful. In a prior link I sent you (about doing business in CA), we reference many of the applicable laws in CA. The "which state" is the most misleading subject matter in the industry... and it leads to a lot of confusing. The article you linked to fails to talk about issues like foreign qualification, "conflicts of law" (if something goes to court), state income tax upon the Members, and lots more.
Hi Mat, how can I download Delaware LLC online?? I tried but can't 🙏
Hi, i was wondering I registered my business & it was approved, I acquired my EIN. Now I need a business ( occupational ) tax receipt from my tax collector. However I’m not gonna operate my business until next month. Do you know if I have to obtain the business tax receipt right away or can I wait until I start? Thanks!
Hi Luis, you can get the business occupational tax stuff setup now. There's no negative to that. That's how most people do it. Get all the logistics/paperwork in place ahead of time. Hope that helps.
Dear Matt, how can I reach you please and contact you directly?
Hi Kareem, feel free to share your email address and then delete after I reply again.
Hi Matt,
I created LLC entity in Wyoming (by your link to Northwestregisteredegent.com) but the creation still in progress, and I want to get ITIN. So I will send to the IRS ( form w7, my passport and form 1040NR ), I don't know how to complete form 1040NR and I don't know if I must attach schedule-c too!
Can you help, please?
I know that I can get an EIN without SSN or ITIN, but I want to get ITIN because Amazon need that, so I have to get it.
Hi iMS, you can only get an ITIN if you have a US tax filing requirement. We have the instructions here: www.llcuniversity.com/irs/how-to-apply-for-an-itin/. We don't recommend completing 1040NR yourself, as it's a pretty complicated tax return. We recommend hiring an accountant. Send an email to Gary at gwcarter.com/ - they specialize in working with non-US residents and they can help with ITIN, 1040NR, and more. Hope that helps.
Hi iMS, you can only get an ITIN if you have a US tax filing requirement. We have the instructions here: www.llcuniversity.com/irs/how-to-apply-for-an-itin/. We don't recommend completing 1040NR yourself, as it's a pretty complicated tax return. We recommend hiring an accountant. Send an email to Gary at gwcarter.com/ - they specialize in working with non-US residents and they can help with ITIN, 1040NR, and more. Hope that helps.
Merci
You're welcome Algane.